The rupee declined 22 paise to 87.41 against the US dollar in early trade on Thursday after the latest tariff announcements from the US weighed on emerging currencies, including the rupee.
Forex traders said the latest tariff announcements from the US have sent shockwaves through global markets, strengthening the dollar.
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At the interbank foreign exchange, the rupee opened at 87.26, then fell to 87.41 against the American currency, registering a decline of 22 paise over its previous close.
On Tuesday, the rupee fell sharply by 47 paise to settle at 87.19 against the US dollar.
On Wednesday, equity, forex, commodity markets were closed on account of Mahashivratri.
Global financial markets experienced renewed volatility as US President Donald Trump reaffirmed his commitment to tariffs, announcing that duties on Canada and Mexico would take effect from April 2.
Adding to trade tensions, he hinted at a potential 25 per cent reciprocal tariff on European goods, escalating fears of a retaliatory response from the European Union.
However, the delay in imposing the 25 per cent tariffs on Mexican and Canadian goods — originally set for March 4 but postponed to April 2 — is limiting the US dollar’s gains.
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Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.62, higher by 0.19 per cent.
Brent crude, the global oil benchmark, quoted 0.30 per cent higher at USD 72.75 per barrel in futures trade.
“The USD/INR pair is expected to remain at elevated levels, with strong support at 87 and resistance at 87.50-87.60, as prevailing global challenges outweigh the existing advantages,” CR Forex Advisors MD – Amit Pabari said.
In the domestic equity market, the 30-share BSE Sensex was trading 11.84 points or 0. 02 per cent higher at 74,613.96 in morning trade, while Nifty was lower by 1.50 points or 0.01 per cent to 22,546.05.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,529.10 crore in the capital markets on net basis on Tuesday, according to exchange data.